Carl Marks Advisory Group Receives Turnaround Management Association's 'Large Company Turnaround of the Year' Award

NEW YORK, Sept. 23 /PRNewswire/ -- The Turnaround Management Association (TMA) will recognize Carl Marks Advisory Group LLC with the prestigious Turnaround of the Year Award for the successful restructuring and revitalization of Sleep Innovations Inc. during the TMA Annual Convention, Oct. 6-8 at the JW Marriott Grande Lakes in Orlando.

Carl Marks earned the coveted honor in the "Large Company" category, which recognizes successful engagements with revenue of $300 million USD or greater at the onset of the turnaround, which was led by Richard A. Heller, partner at Carl Marks, who served as interim CEO during the turnaround.

According to TMA, winners of the Turnaround of the Year awards exemplify the ability of turnaround professionals to apply unique solutions and tools to overcome complex and challenging situations. They also represent the significant results that can be achieved by using well-executed, textbook turnaround management techniques to transform a troubled company of any size in a variety of industries.

"We're honored to be recognized for the hard work it took to put Sleep Innovations on the right path and that the turnaround industry has perceived our efforts as a tremendous success," said Heller.

Sleep Innovations Inc., based in West Long Branch, N.J., is a leading manufacturer of specialty sleep products and the No. 2 memory foam manufacturer behind Tempur-Pedic. The company sells two major classes of trade – retail and original equipment manufacturers (OEM). Sales for the retail business, which was founded in 1996, includes pillows, mattress toppers and mattresses. In the United States, Sleep Innovations is estimated to have a 22-percent share of the memory foam market, with an extremely strong showing in the mattress topper category. The company's OEM business sells large blocks of foam and fabricated foam products to furniture and bedding manufacturers. Gross sales in 2007 totaled $432.6 million.

In 2007, the company faced a number of fiscal challenges, including a recessionary decline in sales, rising commodity prices and an intensely competitive retail environment, as well as a management crisis. As a result, Sleep Innovation's cost structure began to balloon and suffered severe EBITDAR declines, beginning in 2007. This rapid decline, combined with poor inventory management, quickly resulted in a liquidity crisis, leaving the company without cash in 2008.

Sleep Innovations hired Carl Marks in June 2008 as CRO and shortly thereafter promoted the firm, under Heller's guidance, to interim CEO in August 2008. Under the turnaround plan developed by Carl Marks, Sleep Innovation's EBITDAR improved dramatically since 3rd Quarter 2008, thanks to a stringent and effective cost reduction program implemented during the engagement. Carl Marks' long-term turnaround plan included a voluntary, pre-packaged Chapter 11 financial reorganization, from which the company successfully emerged after only five months.

"The $29 million in EBITDAR in 2009 was a significant improvement over more than $18 million from 2008 results," Heller notes. "The company also has enjoyed improved liquidity and executional dependability since the CEO transition. Customers, vendors and lenders/owners now are solidly supportive of the company. It's an exciting new chapter for Sleep Innovations."

About Carl Marks Advisory Group LLC and Carl Marks Securities LLC

Carl Marks Advisory Group LLC, with offices in New York, Vienna, Va., Bedminster, N.J., and Charlotte, N.C., provides a wide array of investment banking and financial, operational and real estate advisory services to the middle market, including mergers and acquisitions advice, sourcing of capital, financial restructuring plans, strategic business assessments, improvement plans and interim management.  Carl Marks is the 2010 recipient of the Turnaround Management Association's Turnaround of the Year Award in the Large Company category.

Carl Marks Securities LLC, based in New York, assists its clients in executing private placements of debt and equity. The firm is a member of FINRA and SIPC. Additional information about Carl Marks Advisory Group LLC and Carl Marks Securities LLC is available at www.carlmarks.com.

About Turnaround Management Association

The Chicago-based Turnaround Management Association has more than 9,000 members in 45 regional chapters who comprise a professional community of turnaround practitioners, attorneys, accountants, investors, lenders, venture capitalists, appraisers, liquidators, executive recruiters and consultants. For more information, visit www.turnaround.org.

SOURCE Carl Marks Advisory Group LLC